Compare electricity rates in Texas

Texas energy deregulation began in 2002, ending the monopoly utility companies had over their service areas. Utilities stopped selling electricity to consumers and focused on delivery and maintenance (of power lines, equipment, etc.). Independent providers, meanwhile, began to sell electricity to consumers.

Today there are many providers, or REPs, to choose from, which benefits consumers across the state. Consider the latest statistics:

•         Texas residential electricity rates are 10 percent lower than the national average.
•         Commercial electricity rates are nearly 23 percent lower than the national average.
•         Industrial electricity rates are nearly 16 percent lower than the national average.
•         Texas generates (by far) the most electricity of any state from wind.
•         Texas generates the fifth-highest amount of electricity from solar energy.

Ready to shop cheap Texas electric rates? Enter your ZIP code above to get started. Otherwise, keep reading to learn what to expect during the buying process, including current rates, types of plans and a more detailed look at your area.

There are many types of electricity plans in Texas, but the most common are fixed- and variable-rate plans. Within these plan types are different rate options, so be sure to read the electricity facts label (EFL) carefully before signing up. That said, here’s what you can generally expect from these plans:

• Fixed-rate electricity plans give customers the most stability for their monthly energy bills. Your rate will not change for the duration of your contract, so you’re protected from market highs and lows. The only variables are usage and any government fees or taxes.
• Variable-rate electricity plans have rates that fluctuate depending on market electricity prices. You might see your bill go up sharply when energy is in high demand.

Think of fixed and variable rates like you would an investment strategy, where fixed-rate plans are more stable bonds and variable-rate plans are aggressive stocks. The type of plan you choose depends on your risk tolerance and your needs.

Deregulated energy providers also offer renewable energy, prepaid electricity plans, and no deposit options. Some providers may also offer energy deals and promotions. For more detailed information and help picking the plan that suits you, please see our energy buying guide.

Choose Energy is a 24/7 online marketplace where Texas residents can compare electric plans and rates from top providers such as TXU Energy, Gexa Energy, and Reliant Energy at no cost. We partner with trusted providers so you can be sure you’re getting reliable service. Let’s get started:

1.   Enter your ZIP code above. We’ll show you today’s low electricity rates in your area. Compare plans and choose what’s right for you.
2.   Sign up online or over the phone. Either way takes only minutes. Not sure what to choose or just want a little more guidance? Give one of our energy experts a call and they’ll be happy to help you.
3.   Enjoy your new energy plan. Your new provider will work with your utility company to start your service with no interruptions. It’s as easy as that.

With so many providers on the market, it can be hard to tell the difference, let alone make an informed decision. To help with this, Choose Energy reviews the providers we work with so you can better understand the pros and cons of each company.

Using categories of customer service, online accessibility, and business history, we’ve assigned a score out of five, with individual scores in each category. Read the reviews and learn more in our full ranking.

Texas electric rates change throughout the year depending on the season, demand, and other factors. The U.S. Energy Information Administration (EIA) tracks these changes on a monthly basis, shown in the chart below. EIA’s most recent data is available through August 2020 and lists the average retail rate for electricity in Texas as 11.74 cents per kilowatt hour (¢/kWh).

Rates are often lowest at the beginning and end of the year, and highest in the spring. If you become familiar with these trends and plan to buy during a market low, you may be able to find a lower rate.

How do I move my electric service?

Thankfully, most energy companies are flexible with customers who are moving. In Texas, you can stay with your current provider (if it offers service at your new address) or you can switch to a new provider with no early termination fees. You can shop for a new energy plan up to 90 days before you move – just select your move-in date during sign-up and you’ll be all set. Learn more on our Texas movers page.

How do I switch my electric provider?

Switching energy providers is easier than it may seem. First, you’ll need to find out if your contract has an early termination fee. If it does, you won’t have to pay it if you switch 14 days or fewer before your contract ends. Once you’ve figured that out, enter your ZIP code above. We’ll show you plans in your area and you can choose whichever one you like. Sign up online or over the phone and your work is done. It really is as easy as that. Learn more here.

Will I have to pay a deposit?

It depends. Every energy provider on the market chooses a different credit threshold, below which they will require a deposit. When you shop with us, we’ll let you know if you have to pay a deposit for the provider you choose. If so, we’ll find you some options without a deposit that you can compare with your original choice. Visit our deposits guide to learn more.

Why does Choose Energy run a credit check?

Providers we work with generally require us to run a credit check before they will offer service. It allows them to decide if they need you to pay a deposit. Credit checks are a normal part of electricity shopping and nothing to be afraid of, especially with Choose Energy. We run a soft credit check – the kind that doesn’t affect your score. In addition, we only run it once. We’ll check your score against all the providers on our site so you can find the best deal. See our deposits guide above for more information about the credit check process.

If you’re experiencing a power outage, please contact your utility company. Otherwise, please visit our list of partners and providers to get in contact with your electricity supplier.

Updated: 11/17/2020